Common use of Guarantee Obligations Clause in Contracts

Guarantee Obligations. Each Guarantor irrevocably and unconditionally, jointly and severally: (i) guarantees to each Finance Party punctual performance by each other Obligor of all of that Obligor’s obligations under the Finance Documents; (ii) undertakes with each Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Finance Document, it shall immediately on demand (Norw.: påkravsgaranti) pay that amount as if it was the principal obligor; and (iii) agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 18 if the amount claimed had been recoverable on the basis of a guarantee.

Guarantee Obligations. Each Guarantor irrevocably and unconditionally, jointly and severally: (i) guarantees to each Finance Party as and for its own debt and not merely as surety the punctual performance by each other Obligor Borrower of all of that ObligorBorrower’s obligations under the Finance DocumentsDocuments (the “Guaranteed Obligations”); (ii) undertakes with each Finance Party that whenever another Obligor a Borrower does not pay any amount when due under or in connection with any Finance Documentthe Guaranteed Obligations, it shall immediately on demand (Norw.: påkravsgaranti) pay that amount as if it was the principal obligor; and (iii) agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of an Obligor a Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 18 19 if the amount claimed had been recoverable on the basis of a guarantee.